“Killing Me “Soft”ly”:

This is not a time to be green-lighting buys and being aggressive with technology. Nothing goes up in a straight line and this is the time to be building a watchlist, looking for leaders to pull back into good risk/reward scenarios. Or even shorting laggards that ran too far as a rising tide lifts all boats, some more than they should have. AAPL reversed a bit Wednesday and that could have been the catalyst as it recorded a bearish shooting star within spitting distance of the very round 200 number (TSLA was soundly rejected at 300 Wednesday registering a bearish island reversal Thursday after the gap up on 7/3). The two most influential groups inside tech have been competing for supremacy this year and at the moment it is software winning the battle. The SOXX fell almost 4% Thursday, its largest decline in 2023 so far. The ratio chart below says to be overweight software versus semis but look for sensible entries and start small and look to add as strength resumes, when it does so. TSM slumped 5% Thursday after reporting before the bell and has been a bit weak since the 6/13 bearish counterattack candle. AVGO has been having issues at the very round 900 number and its weighting is nearly the same as NVDA in the SOXX.

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